Running a business is quite a daunting task, as a business owner your number one priority is to do everything in your power to limit the risk and to keep the business operating smoothly. However, the possibility of limiting a business against a lawsuit seems far fetched considering the risk you have to take in running a business.
This article will take on the five actions you can utilize to ensure the business community and protect your company moving forward.
Careful What You Say and Do
Building and maintaining a business image is important, it is important to owners as well as the employees to avoid making any public announcements or conducting any business that is considered questionable. In other words, you should avoid statements that are libelous or potentially slanderous. It also means avoiding any business transactions with unscrupulous business owners. Doing business with these people may not look as harmful as you think but once they make a mistake, your company’s name will get dragged and may be linked to the fallout.
Detached Yourself from Your Business
Operating a business as a sole proprietorship is completely fine. But operating in this kind of setting may also come with a price, and you have to prepare for that. The problem with a sole proprietorship is that if the company is being sued, the business owner’s individual assets like home or car, are easily attacked or even attached in a court of law. One solution is to have a trust own the business, a legal entity that can own property and files its tax return. In worst case scenarios, the only assets that can be attacked are those in the trust itself.
Hire a Competent Attorney
Having a competent attorney in a business operation is a must. For one, you can have a standby legal contact, another is you can also have a person who will advise you before you act or on how to react when you’ve been sued. In choosing or attempting to secure a lawyer, make sure to get an attorney who is familiar with local laws and customs like Chester solicitors, who specializes in an area of expertise.
All businesses should always include liability insurance ion their priority list. It is important for the business to be protected from unfortunate circumstances of business transactions, there should be covered to ensure the business would be protected should a customer or client accuse the owner of making some error, or not honoring the contract. If you own a large business with a formal board of directors it makes sense to include in the insurance the directors and officers liability.
Protect Your Files
Having a digital age means more work done on the computer, it makes sense to emphasize the safety measures for your computer system. It is important to have your system updated to like your antivirus and other types of security software. You do not want your computer to shut down because of a virus, this will put your whole business at risk because it will not be able to perform certain contracted work.